Got into a discussion with someone about the effectiveness of cash-back credit cards vs. cash. If a credit card company is going to give you 3% back on a purchase, isn’t that better than buying with cash and getting 0% cash back? Not at all.

You’re far more likely to spend more when using a credit card, so you’re not saving any money at all. Look at what happens when you spend 12-18% (Dun and Bradstreet report I can’t find primary source for) more when paying with credit card than cash: